Millions could be underinsured

MONEYFACTS ARCHIVE
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Having the right level of home insurance cover is vital to ensure you’re completely protected should the worst happen, yet research from NFU Mutual warns that a worrying number of people could be underinsured – risking financial loss should they need to make a claim.

The research, conducted in partnership with YouGov, found that 17% of surveyed homeowners have never calculated the true value of their home’s contents, which in itself means that millions of pounds’ worth of items could be underinsured, or even not insured at all.

Not only that, but 19% don’t know what the most expensive item in their house is – 24% think it’s a piece of technology, while 23% think it’s an item of jewellery, but if they’re not completely sure, they could get a nasty shock should they ever need to replace anything.

Ross Garner, high-value home specialist at NFU Mutual, explains why it’s so important to get everything properly valued, particularly things that fit into the high-value bracket:

“Our research shows that many people simply don’t know how much their possessions are worth, [and] even if they do have an inkling, their estimates are likely to be significantly wide of the mark if they haven’t had expensive items such as jewellery valued in the last five years.

“Technology may be one of the more expensive purchases homeowners make, but it is also likely to depreciate quite quickly. It’s often the items that aren’t bought so frequently, including those received as gifts or an inheritance, that can increase significantly in value over just a few years.

“That’s why it’s important to assess the value of your possessions every few years and update your home insurance too so your most treasured possessions are properly covered if you ever need to make a claim.”

What next?
Don’t risk being underinsured – if you haven’t totted everything up recently, now’s the time to do so, and make sure to get particularly pricey items valued if you haven’t done so in a few years.

Then you need to make sure that your home insurance cover is sufficient. Speak to your insurer if you need to change the value of your contents cover, and if it’s time to renew your policy, make sure to compare alternatives to be confident you’re getting the best deal for your newly-valued possessions.

Source: https://moneyfacts.co.uk/news/home-insurance/millions-could-be-underinsured/